SB12 Alabama 2010 1st Special Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyRodger SmithermanQuinton RossRoger Bedford, Jr.Priscilla DunnGeorge M. “Marc” KeaheyVivian Davis FiguresJerry L. Fielding

Session

First Special Session 2010

Title

Lobbyists, registration with Ethics Commission, annual fee increased, reduced fee for lobbyist paid by tax exempt organization, Sec. 36-25-18 am'd.

Summary

SB12 would require the Alabama Department of Revenue to refund income tax overpayments more quickly and set how interest is calculated on refunds and underpayments, with several exemptions.

What This Bill Does

It amends Section 40-1-44 to require refunds of income tax overpayments to be paid within 30 days of receiving the tax return. It sets that interest on underpayments and certain refunds would be calculated using the underpayment rate established by the U.S. Treasury. It lists several refunds or taxes for which no interest would be paid, including various license taxes, certain gasoline and motor fuels taxes, tobacco taxes, and specific off-road refund scenarios. The act becomes effective immediately upon approval by the Governor.

Who It Affects

• Taxpayers (individuals and businesses) who overpay or are due income tax refunds; they could receive refunds faster (within 30 days) and have defined rules for when interest is paid on overpayments.
• Specific tax categories and refund recipients that are subject to exemptions from interest, such as license taxes, certain gasoline and motor fuels taxes, tobacco taxes, and certain off-road refund situations; these refunds would not earn interest under the bill.

Key Provisions

• Amends Section 40-1-44 to require timely payment of income tax refunds and to set the interest framework.
• Refunds must be paid within 30 days after receipt of the return; interest on overpayments is computed from the date of overpayment using the underpayment rate set by the U.S. Treasury (26 U.S.C. §6621).
• No interest will be paid on certain listed refunds (license taxes, gasoline taxes for agricultural use, gasoline taxes for engine static testing, certain motor fuels refunds, tobacco taxes, and certain off-road motor fuels refunds with timely documentation).
• Interest rules include detailed carve-outs and timing rules for other refunds, with specific references to existing statutes for exceptions.
• Effective date: immediately after Governor’s approval (or when it becomes law otherwise).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Lobbyists